The tax rates in the New Tax regime are the same for all categories of individuals. Hence, there is no increased basic exemption limit benefit that will be available to the senior and the super senior citizens in the New Tax Regime.
Individuals with Net Taxable Income less than or equal to Rs 5 lakh will be eligible for the tax rebate u/s 87 A the tax liability will be Nil for such individuals in both New and Old existing tax regimes.
The exemption limit for NRIs is Rs. 2.5 lakh irrespective of age.
Additional health and education cess at the rate of 4% will be added to the Income-tax liability in all cases ( Increased from 3% since FY 2018-19)
An applicable surcharge as per tax rates below in all categories mentioned above:
- 10% of the income tax if total income > Rs. 50 lakh.
- 15% of the income tax if the total income > Rs.1 crore
- 25% of the income tax if the total income > Rs.2 crore.
- 37% of the income tax is the total income > Rs.5 crore.
What are the conditions to opt for a new tax regime?
The taxpayer opting for concessional rates in the new tax regimes has to forgo the exemptions and the deduction that is available under the old tax regime. In total 70 deductions are allowed out of which the most commonly used are listed below:
The list of common exemptions and deductions that are not allowed in the new Income tax regime are:
- Leave travel Allowance
- House Rent Allowance
- Conveyance Allowance
- Daily expenses in the course of employment
- Relocation Allowance
- Helper Allowance
- Children Education Allowance
- Other Special Allowances [Section 10(4)]
- Standard deduction on salary
- Professional tax
- Interest on housing loan (Section 24)
- Deductions under Chapter VI A deduction (80C, 80D, 80E and so on) (Except Section 80CCD (2))